Under fixed exchange rate system, fall in the value of domestic currency due to deficit in balance of payments resulted in$?

Question

TuteeHUB · Accepted Answer

NA

TuteeHUB · Answer

depreciation of the currency

TuteeHUB · Answer

devaluation of the currency

TuteeHUB · Answer

appreciation of the currency

TuteeHUB · Answer

no change in the exchange rate normally

1.	Under fixed exchange rate system, fall in the value of domestic currency due to deficit in balance of payments resulted in$?
A.	depreciation of the currency
B.	devaluation of the currency
C.	appreciation of the currency
D.	no change in the exchange rate normally
Answer» E.

Discussion